What is the outlook for Reliance Industries (RIL)?
RIL (2,341.15 INR): Structurally, on the charts, RIL has been in an uptrend for the past five years. The last drop since October is just a correction of the general uptrend. The immediate support is Rs 2,300 – INR 2,250. The next support is in the $2,100-$2,000 area. Investors wanting to enter the stock can consider buying on two levels. Buy 50 percent of the total amount intended at Rs 2,320 and 50 percent balance at Rs 2080. Therefore, the average buy price will come at $2,200. Keep your stop loss at $1,780 and wait for a target of 3,200 rubles.
What is the medium term outlook for Steel Authority of India (SAIL) stock?
Sail (INR 112.3): The stock has been in a strong uptrend since October of last year. Within this uptrend, the stock has been in a gradual corrective decline since May of this year. The immediate support is at $101-100. The next important strong support is in the $90-$85 area, which could limit the downside. A break of less than Rs 85 is unlikely. The stock is likely to see a new high from the Rs.90-85 region.
From a long-term perspective, this rally would have the potential to target levels of $200-$250. From a medium and long-term perspective, investors can buy at Rs 95. Keep your stop loss at $55. Keep it for a target of Rs 230 to Rs 250. In the event the stock breaks below $85, although it is less likely, consider accumulating at Rs 70.
I bought shares of Tata Steel at INR 1085. What is the long-term outlook for this stake?
Vimal Kumar Mangalam
Tata Steel (1131.85 INR)The stock has seen a sharp correction since August of this year. Strong resistance is in the region of Rs 1,230-1,300. The stock is likely to stay below $1,300 now. Support at ₹ 1,010 – INR 1,000. If the stock can hold above this support, a consolidation between $1,000 and $1,200 is possible for a month or two. Next, a break above INR 1,200 will set the stage for a fresh rally to INR 1,600 – INR 1,650 in the medium term. But, if the stock falls below Rs 1,000, it can fall around Rs 800. You can consider two options. First, buy more shares at Rs 1,020. In case the stock breaks below $1000 and the fall extends, you can buy more at Rs 830. You can keep 720 RUB as a stop loss and keep it for the long term. Second, if you can’t afford to lose even $800, keep your stop loss at $960 now and exit with a loss. Perhaps then you can wait to buy again at INR 830.
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